88 OMC Impeller

This is on a 88 Cobra 2.3 liter....Ok...I have read lots of posts on the impeller but didn't really find the answer for my situation. I pulled my impeller to inspect it and wasn't sure how to or if I should put it back on. I took the housing with the impeller inside to a few shops and they said the mickey mouse shaped gasket looked ok and the impellar looked good. They said to put some Ultra Black gasket maker around it and put it back together. I did that and put it back on pretty tight but when I put the muffs on and idle for a bit I see droplets of water forming around the housing(how tight should I get those bolts...i don't want to crack the housing). It looks like it is coming from in between the wear plate and the outdrive...not necessarily between the housing and the wear plate. My question is...do I have to put sealer between the wear plate and the outdrive. Also if I have the impeller installed properly should I not see any drops of water at all??? I ran it for about 10 to 15 minutes with the muffs on and the temp never moved much past 100. Lastly if I do have to redo it all and buy a kit....am I supposed to glue the metal screen and the gasket ring into the housing? Thank in advance for anyone who can help with this...I would love to take it out this weekend but I don't want to destroy my engine.